The Tacoma real estate market in Spring 2023 is bouncing back. The number of buyers for homes in Tacoma remains high (especially for homes under $600,000). We’re seeing the number of days a home spends on the market dropping and the median sales price increasing. In this post we will talk about what that means for home buyers, sellers, and investors.
As of April 2023 home prices are trending up in Tacoma and Pierce County after falling about 10% from Spring 2022 to Winter 2023. The current median sales price of a home in Tacoma is $460,000. The median sales price of a home in Pierce County is $510,000. Demand for homes in Tacoma and Pierce County remains very strong, especially for homes under $600,000 as buyers struggle to acquire financing for homes with higher interest rates.
There is still a demand for homes in Tacoma, especially homes that have been properly prepared for the market. As you can see in the chart above the number of days homes in Tacoma (and all of Pierce County ) is falling. Homes in Tacoma spend about 13 days on the market before receiving an offer. In Pierce County the number of days is 17. The effort that sellers make preparing their homes for sale is more important than ever. First and foremost, sellers need to have their homes thoroughly cleaned before they are photographed and put on the market. Additionally sellers should make sure that repairs that will impact a buyers ability to finance the property are prioritized.
Because the interest rates have gone up (essentially doubling from 3.5% to close to 7%- though rates are fluctuating) buyers find themselves facing higher mortgage payments. While we are seeing some seller’s homes sit on the market (Some buyers have even had the opportunity to buy homes contingent on the sale of their existing home) we’re also seeing multiple offers on certain homes. Staying fluid is important for buyers. Depending on the neighborhood, the price of the house, the condition of the house, and the size of the house- demand for homes can be high. Especially for homes under $600,000. Buyers and their buyers agents need to be on their toes and be constantly reevaluating the market as they go.
The Tacoma Real Estate Market is seeing an overall shift (see our post Tacoma Real Estate Market 2023.) On top of this national shift land use changes are the biggest change for investors in the Tacoma real estate market in 2023. It’s less about just numbers and more about how single family zoning is going away statewide. While the proposed legislation is still being hashed out at the state level, Tacoma is passing Home in Tacoma. Home in Tacoma is going to increase the amount of multifamily properties allowed in neighborhoods across the city, especially in specific corridors.
On the landlord/tenant side, things are going to get more strict when it comes to rent increases. Effectively, rent control has been proposed. At this point it’s made it’s way through committee at the state level and it remains to be seen how it manifests statewide in Tacoma. But with rents having increased so quickly and so much over the past few years, investors should be building rent control into their business plans.
How to Choose the Best Tacoma Real Estate Agent for You
Tacoma’s Most Expensive Neighborhoods
Tacoma’s Most Affordable Neighborhoods
The Most Affordable Neighborhoods in Pierce County
Marguerite Martin, Founder of MoveToTacoma.com is a real estate agent in Tacoma, WA . As a Tacoma real estate “Matchmaker,” she specializes in connecting real estate clients to the perfect agent in Tacoma and across the country. Learn more at Meet Your Guide.
Thinking of moving to Tacoma in 2022? You’re not alone. As a Tacoma real estate agent specializing in relocation and buyers- I’ve spoken with hundreds of people relocating to Tacoma from across Pierce County, from Seattle, and across the country. Here are some of the most common questions they ask in our conversations:
Yes and no. Aside from the incredible natural beauty, people move to Tacoma and Pierce County from out the area because of how affordable Tacoma is compared to many other west coast cities. Demand for housing in our areakeeps increasing and we are simply not keeping up with the demand. Affordable in Tacoma and Pierce County in 2022 means anything under $450,000. To find out why Tacoma is no longer as affordable as it used to be, check out the blog post, “Tacoma isn’t affordable anymore. Here’s why.”
The median home price in Pierce County is $515,000. The average home price is $566,584. Back in 2020 home prices in Pierce County increased 15%. Then in 2021 Pierce County home prices increased again by over 17%. Pierce County is a seller’s market with very little inventory. As of January 2022 homes under $650,000 are still extremely sought after. While homes over $650,000 are still in a seller’s market, the sales pace is less frenzied than the more affordable homes.
After 17 years selling real estate in Tacoma, I’ve found different people define “best” in a wide variety of ways. Here’s a breakdown of the top neighborhoods in Tacoma and Pierce County using a variety of criteria:
The Most Affordable Neighborhoods in Tacoma & Pierce County
Good Neighborhoods in Pierce County
The Best Neighborhoods for Commuting to JBLM
Best Neighborhoods with Water Views near Tacoma
The Best Neighborhoods for Commuting to Seattle from Tacoma
Much like “good neighborhoods” criteria for “good schools” can vary widely in Tacoma. Check out this blog post, “How do you Find the Best School in Tacoma” including interviews with folks at Tacoma Public Schools, the Superintendent of Tacoma Public Schools, a University Place School Board Member, and more. Here are all of the public school districts in Pierce County:
Franklin Pierce School District
Steilacoom Historical School District
Sumner Bonney Lake School District
University Place School District
As folks are working remote more and less concerned about commute, finding a home further out on land is becoming more and more appealing. Pierce County still has lots of neighborhoods with homes on an acre of land or more including Spanaway, Graham, Elbe/Ashford, Midland, Eatonville, Edgewood, and the Key Peninsula for example. The Elbe/Ashford area is one of the most affordable (and remote!) places to buy a home on land in Pierce County with a median home price under $400,000. To learn more visit, “Best Cities to Buy a House with Land in Pierce County.”
For learning about Tacoma culture, I definitely recommend diving into Tacoma’s thriving podcast community. Channel253 Podcast Network is a locally owned network of podcasts covering news, politics, culture, race, eduaction, and more. This includes my podcast, the Move to Tacoma Podcast which includes interviews with lifelong and relocated Tacomans spanning the last seven years,
Tacoma used to be a friendly place for first time buyers to buy. Nowadays it’s much harder. But it’s not impossible. In most cases, you do NOT need to put 20% down to get into a home. Across the country the national downpayment average is 5%, and many first time buyers in Tacoma still buy homes with minimal downpayments. There are FHA home loans where you can put down just 3.5%. In order to know what types of loans or assistance programs you might quality for, you HAVE to talk to a lender about all. Find someone you like and trust and work with them to make a plan. Looking for a recommendation for a real estate agent and lender to help you buy your first place in Tacoma? Contact me.
Buying a condo in Tacoma is different than buying condos in other cities in the US. We have a smaller selection to choose from and many of them are conversions from apartments. You definitely want to make sure you’re working with an expert who has sold condos in many of the Tacoma buildings and has experience with their quirks.
The Difference between a condo and a townhouse in Tacoma
How to Choose a Condo in Tacoma
Video Tours of some Tacoma Condo Buildings
Here are the most common commute times from Downtown Tacoma by car:
Downtown Seattle – 1 to 1.5 hours in rush hour
Olympia – 30 to 45 minutes in rush hour
Bellevue – 50 minutes to 1.5 hours in rush hour
JBLM – 15 to 30 minutes in rush hour
There are buses and trains connecting Tacoma with Seattle. Pierce Transit has bus service in Pierce County- continuing to the suburbs like Puyallup, South Hill, Gig Harbor, Milton, Edgewood, and Northeast Tacoma. More rural areas like Graham, Kapowsin, Bonney Lake, and Key Peninsula are less accessible by public transportation.
Pierce Transit runs all of the buses in most of Pierce County. To see a system map click here. There are ST Express buses that take people from Tacoma to Seattle, Bellevue, and Everett operated by Sound Transit.
Sound Transit operates the Link Light rail that connects Downtown Tacoma to the Tacoma Dome Station. You can see a service map and schedule on the Sound Transit website here.
Sounder Trains run from Lakewood to Everett stopping in South Tacoma, Tacoma Dome, Puyallup, Sumner, Auburn, Kent, Tukwila, Seattle, Edmonds, Mukilteo, and finally Everett.
Amtrak Cascades Trains take passengers from Tacoma Dome Station all the way to Vancouver Canada (to the north) and through Portland Oregon and on to California (to the South).
The biggest piece of advice I have is to work with a local expert that you trust. These days buying a home (especially if you’re buying for less than $650,000) is extremely competitive in Tacoma. You want an agent that you connect with, that has proven experience representing buyers in your price range, and has the time to work with you and give you the service you deserve. I ‘ve written some blog posts about my ideas for choosing an agent including, “An Insider’s Guide to Choosing a Real Estate Agent.” If you’re looking for a recommendation for a real estate agent feel free to contact me.
If you have a friend who is a real estate agent who is NOT a Tacoma specialist and you’re not sure how to talk with them, check out my post “When Your Friend is a Real Estate Agent and You Want to Use Someone Else” on LinkedIn.
Additional Resources for people moving to Tacoma:
A list of Neighborhoods in North Tacoma
Complete List of Cities and Neighborhoods in Pierce County
Neighborhoods in Gig Harbor, WA
The Most Popular Neighborhoods in Tacoma in 2021
Marguerite Martin is a different kind of Tacoma real estate agent. Check out the Tacoma Neighborhood Guide to find answers to questions you have about neighborhoods in Tacoma and Pierce County. When the time is right to start looking, Marguerite can connect you with a local real estate agent who specializes in the neighborhoods you love most. Click here to contact Marguerite.
Pierce County Real Estate has been on fire for years. This year homes appreciated 18% from October 2020 to October 2021. The year before homes appreciated 15%. This has a lot of people carefully considering where they will get the best match for their lifestyle and budget. I sat down with my friend and colleague Kylee to talk about the Pierce County Real Estate Market in 2021 and to learn more about where to move and why!
Some examples of communities that function as Tacoma’s suburbs are Milton, Edgewood, South Hill, Frederickson, Bonney Lake, Gig Harbor, Spanaway. Click here for a complete list of cities and neighborhoods in Pierce County.
YES. Homes in the suburbs are competitive- maybe not as many offers but there will still likely be motivational offers and homes are often selling for far over the list price. Don’t give up, it might take a few offers to find the right house.
To see more videos like this visit Marguerite’s youtube channel.
Marguerite Martin is a different kind of Tacoma real estate agent. Check out the Tacoma Neighborhood Guide to find answers to questions you have about neighborhoods in Tacoma and Pierce County. When the time is right to start looking, Marguerite can connect you with a local real estate agent who specializes in the neighborhoods you love most. Click here to contact Marguerite.
Tacoma Real Estate is complex. There are downtown Tacoma condos for sale for $50,000 that once sold for $250,000. Not only that, you might see one building with units for sale for hundreds of thousands of dollars while the building across the street has units for sale for less than $100,000! What gives?
In a word, it's all about the financing, baby. Check out my blog post for more information about how to protect the value of your condo and keep your building financeable!
One of the questions I get the most is, “Which are the buildings in Downtown Tacoma with Lofts?” Thanks to Downtown Tacoma’s industrial past, there are quite a few, some of them are rentals and some are condos. I thought I’d do a series of posts about what is out there in Tacoma. If you think I missed one, or need to update my information about financing or amenities, please leave your feedback in the comments!
Condo Buildings
Cliff Street Lofts – 1119 A Street Tacoma, WA 98402The Cliff Street Lofts were one of the first buildings in Downtown Tacoma to be converted from apartments to condos. They have the high ceilings, open layouts, and features like exposed brick that Loft Lovers enjoy. Some of the units enjoy views of the city, while others have full Mount Rainier and Murray Morgan Bridge/Port of Tacoma views. The building is not FHA or VA Approved as of the writing of this post- so double check with your lender if you plan on using that type of financing to purchase in Cliff Street.
Building amenities include underground parking, a rooftop deck with BBQ’s and deck chairs and an elevator.
I often think of the Perkins Lofts as the Cliff Street Loft’s slightly fancier older sister. The finish levels on lofts in The Perkins Lofts are higher, with many of the units sporting cool designer touches. The units at The Perkins Lofts tend to be large with lots of exposed brick, wood floors, and big windows. This building has fared better than many downtown during the downturn. Last I heard they were iffy on FHA financing and could not do VA Financing, so check with your lender about how best to get a loan on a Perkins Loft.
Building amenities include underground parking, a rooftop deck with BBQs and deck chairs, two elevators (great on move in day!), and an atrium/reading room.
The Bridge Condominiums – 744 Market Street Tacoma, WA 98402The units inside The Bridge are all totally unique! You know when you buy one of these that you will have something different than everyone else in town. As I understand it, before the building was converted into condos it was some kind of medical facility, so there are lots of brick walls, concrete floors, and unexpected layouts- usually in a good way! Unlike many lofts that are built into existing buildings- some of the units at The Bridge have their own private rooftop decks, one of my clients that bought there even has TWO DECKS, which in the world of Lofts makes him rich in decks indeed! That said, even if you’re not lucky enough to have a unit with a deck there is a shared community room with deck on the roof. These units are funky, with brick and concrete accents, stairs to nowhere, and other unusual lofty touches. Last I heard FHA & VA financing were not available, so check with your lender about options. My last client to buy here got a Portfolio Loan.
Building amenities include a community room with a rooftop patio with a BBQ, elevator, and storage is available to rent monthly. The biggest downside is the lack of parking, most residents rent spaces by the month or year in the uncovered lot next door.
Next time I get a few minutes I’ll highlight a few more Loft buildings in Downtown Tacoma, and include a few buildings for you renters, too!
Sometimes writing market updates during the worst housing crisis in the history of our country can be kind of a bummer. The foreclosures, the short sales, the empty inventory… it’s so much more fun to talk about people in Tacoma buying million dollar houses, right? I mean, who are these people? So today I am throwing my pie charts, graphs, and acres of sold data to the side of my desk to bring you THE LIFESTYLES OF THE RICH AND (TACOMA) FAMOUS! That’s right, we’re gonna party like it’s 1989 on Get Real Tacoma today- bust out your champagne wishes and caviar dreams because we’re gonna get our luxury on!
Robin Leach wasn’t available today so I will be your host as we take a peek into the lives of some of Tacoma’s wealthiest residents. We’ll be looking at the 5 most expensive closed home sales in Tacoma so far in 2011.
© 2021 Windermere Real Estate
To learn more about Tacoma Real Estate Agent Marguerite Martin visit MovetoTacoma.com
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